Trump's Crypto Advocacy vs Biden's Anti-Crypto Stance: Who Will Prevail in the Election?

To further engage with the crypto community, the once anti-crypto former president of the United States (US), Donald Trump, hosted an event for holders of the Trump Cards NFT Gala on 8 May at his Mar-a-Lago resort in Palm Beach, Florida.

At the gathering, Trump reiterated his support for cryptocurrencies and unveiled plans to accept digital asset donations for potential future political endeavours.

Emphasizing the importance of fostering a conducive regulatory landscape for the burgeoning crypto industry, Trump announced his intention to embrace crypto donations for his campaign.

He said:

"Crypto is moving out of the US because of hostility toward crypto. We’ll stop it because I don’t want that. If we’re going to embrace it, we have to let them be here."

In addressing his campaign while taking questions from the crowd, Trump assured his supporters that if they prefer to donate using cryptocurrency, he will facilitate the necessary arrangements.

He answered:

"Can we donate to the Trump campaign using crypto? I believe the answer is yes. If you can't, I'll make sure you can."

Videos shared by Frank Degods, a prominent NFT creator and influencer, captured Trump addressing attendees who had purchased his "Mugshot Edition" NFT collection.

These collectors, numbering over 47 individuals, each acquired NFTs priced at $99.

In his remarks, Trump reflected on the revitalisation of NFTs, stating:

"We did it when NFTs were not hot. We made NFTs hot again."

Responding to inquiries regarding the retention of crypto businesses within the US, Trump affirmed his commitment to preventing their exodus.

He underscored the importance of fostering an environment conducive to crypto innovation and expressed his determination to ensure that crypto companies remain domiciled in the country.

Trump Accused Biden of Not Understanding Crypto

Appealing to crypto enthusiasts, Trump levelled accusations against President Biden, suggesting a lack of understanding and support for the industry.

He proclaimed:

"They are against it, the Biden – Biden doesn't even know what it [is]…He has no idea but look, Gensler is very much against it. The Democrats are very much against it. And I say this, a lot of people are very much for it. Probably a lot of people who are in this room. And I'm fine with it. I want to make sure it's good and solid, but I’m good with it. If you like crypto in any form – it comes in a lot of different forms – if you're in favor of crypto you’d better vote for Trump."

In a bid to sway crypto supporters, he positioned himself as the preferred candidate, emphasizing potential policy changes under his administration.

Videos circulating on social media captured Trump's criticism of the Biden administration's handling of crypto, hinting at prospective policy adjustments if he were to reclaim office.

Trump underscored the departure of crypto firms from the US amid regulatory challenges, pledging to cultivate a more welcoming environment for the industry domestically should he assume leadership once again.

Trump-Biden Meme Coin Prices Spike After Ex-President's NFT Event

Overnight, election-themed meme coins lampooning US politicians experienced a surge, following former President Donald Trump's rendezvous with holders of his NFT collection.

Leading the charge was Doland Tremp (TREMP), a Solana-based meme coin, skyrocketing by a remarkable 155% to reach $0.69. At the time of writing, it is at $0.6969.

Similarly, the Ethereum-based meme coin MAGA (TRUMP) saw a 42% surge, settling at $6.11. At the time of writing, it has dropped to $5.84.

MAGA references Trump's renowned political slogan, "Make America Great Again.”

Conversely, Jeo Boden (BODEN), representing Joe Biden, recorded a more modest 23.2% increase, reaching $0.37. At the time of writing, it has declined slightly to $0.3029.

Despite Trump's disapproval of such investments during his Q&A session with Trump NFT holders, BODEN and TREMP coins still observed upward movement.

These meme coins gained prominence earlier in the year, with BODEN and TREMP achieving market capitalisations of $473 million and $83 million, respectively, in April.

Since then, their valuations have fluctuated, with current market caps at $209 million and $71 million.

Trump's reaction to the sizable valuation of a coin mocking his political adversary was one of surprise, noting it as "a lot of money for a coin."

On a side note, the BODEN and TREMP meme coins are integral components of the "Spoderman Politicians" series, a collection initially inspired by the Spoderman meme — a character crudely depicted in Microsoft Paint and featured in online comics.

Is Trump's New Love for Crypto an Attempt to Sway Voters?

Trump's previous disdain for cryptocurrency, evident in his 2021 characterisation of Bitcoin as a scam, took a notable turn during his presidency, with frequent criticisms directed at digital assets for their potential role in facilitating illicit activities.

He had expressed:

“I am not a fan of Bitcoin and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity."

However, recent developments suggest a shift in his perspective.

Trump's foray into the world of non-fungible tokens (NFTs), particularly through the launch of the Trump Digital Trading Cards NFT collection in late 2022, underscores this evolution.

Leveraging his identity and branding, this initiative distributed 45,000 NFTs, priced at $99 each, yielding royalties from both initial sales and secondary market transactions.

Remarkably, the project has enjoyed significant success.

Trump's pivot toward embracing crypto culture aligns with his aspirations for gathering support for a potential presidential campaign.

Notably, Avichal Garg, co-founder of Electric Capital, has lauded this shift in Trump's stance on crypto, attributing it to effective counsel.

Garg's observation hints at a potential shift in crypto sentiment, from being critical of Gary Gensler, Chair of the US Securities and Exchange Commission (SEC), to a broader critique directed at Biden and even the Democratic party.

Want to Have Dinner with Trump?

The official website touted:

"President Donald Trump will host an extraordinary evening for some very special Trump Trading Card holders. Dubbed the Winter White House, you'll enjoy a once-in-a-lifetime experience at the president's historic residence and exclusive members only club."

Source: Trump Trading Cards' Official Website

On the website, past dinner attendees share their testimonials with regard to the "unforgettable" meal with Trump.

Source: Trump Trading Cards' Official Website

Trump's $102M War Chest

Back in 2021, disclosure reports reveal that Trump's affiliated political committees boast a substantial cash reserve of $102 million heading into July.

Trump's camp asserts that $82 million of this total was raised within the past six months.

However, scrutiny of Federal Election Commission filings indicates a significant portion of these funds originated from transfers made from the former president's fundraising accounts from the previous year.

While the exact breakdown of the $82 million remains unclear, analysis suggests that at least $18 million in transferred contributions to Trump's prior presidential committee and his newly established PAC, Save America, were dated from 2020.

Anti-Crypto Biden Accused of Attempting to "Kill" Crypto

The Biden administration has made its stance clear on a potential joint resolution affecting crypto policy at the SEC, asserting its intent to veto such legislation should it reach the President's desk.

In a statement issued on 8 May, the White House conveyed its strong opposition to members of the House of Representatives seeking to pass the resolution, which it contends could disrupt the SEC's efforts to safeguard investors in crypto-asset markets and ensure the stability of the broader financial system.

The proposed resolution, H.J.Res. 109, introduced in February, aims to overturn the SEC's Staff Accounting Bulletin (SAB) No. 121, requiring banks to maintain customers' digital assets on their balance sheets with adequate capital reserves.

The Biden administration stated:

"SAB 121 was issued in response to demonstrated technological, legal, and regulatory risks that have caused substantial losses to consumers. By virtue of invoking the Congressional Review Act, it could also inappropriately constrain the SEC's ability to ensure appropriate guardrails and address future issues related to crypto-assets including financial stability. Limiting the SEC’s ability to maintain a comprehensive and effective financial regulatory framework for crypto-assets would introduce substantial financial instability and market uncertainty."

Leaders from both Democratic and Republican factions of the House Financial Services Committee voiced their perspectives on the resolution.

Representative Patrick McHenry, a Republican, advocated for supporting H.J.Res. 109, arguing that SAB 121 allowed the SEC undue influence over how financial institutions safeguard Americans' digital assets.

Although initial indications suggested H.J.Res. 109 would pass by a voice vote, Representative McHenry called for a formal tally of votes, prompting the House chair to postpone further proceedings on the resolution until a later date.

Should the resolution proceed, the US Constitution permits the House to override President Biden's veto with a two-thirds majority vote.

Representative McHenry pointed out:

"If you want Americans to be able to engage with digital assets safely and securely, banks, which are some of the most regulated businesses in our country, are probably the best way."

Charles Hoskinson, the founder of Cardano, has levelled accusations against the Biden administration, alleging a deliberate effort to suppress the crypto industry's growth in the US.

His remarks were prompted by President Biden's announcement of a plan to veto a bipartisan resolution as mentioned above, which has sparked significant controversy within the crypto community.

In light of these developments, Hoskinson has urged crypto holders to reassess their voting decisions in the upcoming elections later this year.

He expressed in a Twitter livestream:

“The Biden administration has engaged in a coordinated effort to kill crypto."

Hoskinson also said:

“This November, if you vote for Joe Biden as a crypto holder, please understand that the intent of this administration is to destroy the American crypto industry."

A Win for Crypto No Matter Who Wins?

Amidst the escalating discourse on crypto regulation, Trump has strategically engaged with the crypto community, leveraging his pro-crypto stance to juxtapose against Biden's regulatory initiatives.

This emerging political narrative underscores the pivotal role of crypto regulation in the forthcoming presidential election, signalling its increasing significance as a frontier in American innovation and economic competitiveness.